GST on Australian accommodation of foreign tourists - Saga

15 Jan 2007

The Full Federal Court (Gyles, Stone and Young JJ) has dismissed the taxpayer's appeal against the decision of Conti J in Saga Holidays Limited v Commissioner of Taxation - see 2006 TAXVINE No 1 (6)(31 January 2006). Conti J held that a foreign company supplying holiday packages to foreign tourists was subject to GST in respect of the cost of the Australian accommodation component included in the packages. Note that the GST Act has been amended by Schedule 3 of Tax Laws Amendment (2005 Measures No 1) Act 2005 to ensure that the GST Act applies in these circumstances: Saga Holidays Limited v FCT [2006] FCAFC 191 (Full Federal Court; Gyles, Stone and Young JJ; 20 December 2006).